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R108 – Derivatives Tax Treatment by Country

Margin trading, futures, options, and leveraged products may be taxed differently across jurisdictions. The table below summarizes common approaches.

Updated over 2 weeks ago

Country

Margin Trading

Futures / Perps

Options

Leverage Tokens

Notes

United States (IRS)

Gains/losses taxable; margin interest deductible as investment expense

Section 1256 contracts (regulated futures/options) get 60/40 split; crypto futures often treated as standard capital gains

Premiums paid = cost basis; expired options = capital loss

Treated as spot asset disposals

IRS has not issued explicit crypto derivatives guidance; applying general rules

United Kingdom (HMRC)

Treated as capital disposals; margin interest may be deductible

Futures and options usually capital gains; some cases may fall under income tax

Options: gains/losses taxable on disposal or expiry

Treated as tokens; disposals taxable

HMRC considers contracts case-by-case

Canada (CRA)

Gains/losses taxable as capital gains or business income depending on intent

Futures/options may be capital or income depending on activity

Options premiums included in adjusted cost

Leverage tokens treated as commodities

CRA guidance applies commodity principles

Germany

Gains/losses taxable as capital income

Futures/options taxable; offsetting limited

Options taxable when exercised or expired

Treated as crypto assets

Derivatives rarely exempt under 1-year rule

Spain

Gains/losses taxable as capital gains

Futures/options gains taxable

Options taxable on exercise/expiry

Tokens taxable on disposal

Italy

Taxable as capital income

Derivatives gains taxable

Options taxable

Leverage tokens taxable

Ireland

Treated as capital gains

Futures/options gains taxable

Options taxable

Tokens taxable

India

All crypto derivatives taxed at 30% flat rate (VDA)

Same

Same

Same

No loss offsets allowed

Japan

Gains/losses taxed as miscellaneous income

Futures/options taxable as income

Options taxable

Tokens taxable

Strict reporting; income tax up to 55%

South Africa

Taxable as capital or income depending on intent

Futures/options taxable

Options taxable

Tokens taxable

SARS applies case-by-case

Australia (ATO)

Taxable as capital gains or income depending on activity

Futures/options taxable; contracts may be treated as CGT or ordinary income

Options taxable

Tokens taxable

ATO distinguishes investors vs traders

New Zealand

Taxable as income if acquired for resale

Futures/options taxable

Options taxable

Tokens taxable

IRD applies intent-based test


✅ Use this guide alongside AT103 – How Netrunner Handles Margin, Futures & Derivatives for jurisdiction-specific insights.

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